Mustard Oil Prices Likely to Increase in the Mid-Q3 of 2023 Across the Globe

Following a continuous upsurged market trend, the prices of Mustard Oil across the North American region have surged since the commencement of Q3 and are projected to remain upbeat until the final weeks of August. Certain factors, such as inflation and increasing prices of other oils, such as Soyabean Oil, has led to increased demand for Mustard Oil as consumers switch to cheaper alternatives, rising demand from downstream and overseas market, and supply constraints owing to reduced crop yield leading to lessen availability for exports supported the rising pricing trend for Mustard Oil in North American region primarily in Canada and Ukraine is one of the exporting countries of Mustard Oil.

Apart from that, another factor that contributed to a higher price trend of Mustard Oil includes the rising cost of inputs, such as fertilizers and pesticides. This further made it more expensive for farmers to grow mustard crops, resulting in a higher cost of production. Furthermore, the supply of Mustard Oil from Ukraine declined significantly in July 2023. The war in Ukraine is still ongoing, and the country is still facing significant challenges in terms of production and exports. According to the market expert, India's Mustard Oil imports from Ukraine fell considerably in July 2023 compared to the same month last year, and higher downstream demand in India has increased Mustard Oil prices. Moreover, the war has displaced millions of people in Ukraine, including many farmers. This has led to a shortage of labor for the Mustard Oil industry, further affecting the supply across the international market.

Likewise, in India also, some farmers stated that the price of mustard had been steadily rising in the majority of mandis, which has led to an improvement in the arrival of mustard in the mandis. Farmers waited a long time for the price to increase so that they could destock their previous quarter's stockpiles at a higher price rate and gain their profits.

Several other factors further contributed to a significant rise in the prices of Mustard Oil, including inflation, one of the primary factors contributing to the rising price of the product. The demand for Mustard Oil is expected to increase due to its anti-inflammatory, anti-bacterial, and anti-fungal properties that help in maintaining blood sugar levels and cardiovascular health and a rise in global prices of other edible oils that the country imports, primarily India. The cost of producing Mustard Oil has been rising in recent months on the back of the rising cost of energy, raw materials, and labor.